Dynamic marketing capabilities view on creating market change

2018 ◽  
Vol 52 (5/6) ◽  
pp. 1007-1036 ◽  
Author(s):  
Reza Kachouie ◽  
Felix Mavondo ◽  
Sean Sands
Keyword(s):  
Organizational Performance ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Reliability And Validity ◽  
Superior Performance ◽  
Equation Modeling ◽  
Marketing Capabilities ◽  
Content Type ◽  
Market Change ◽  
Market Turbulence

Purpose The purpose of this paper is to examine the indirect relationship between dynamic capabilities (DCs) and organizational outcomes through matching and creating market change. In addition, the research aims to gain a deeper understanding of the role of marketing in DCs and to extend beyond a simplistic discussion of DCs by studying proactive market orientation and value innovation as specific DCs. Design/methodology/approach A questionnaire was developed and data were collected from 270 senior executives. After ensuring reliability and validity, the hypotheses were examined by applying structural equation modeling and Monte Carlo simulation. Findings The findings indicate that dynamic marketing capabilities (DMCs) are critical in the reconfiguration of operational marketing capabilities, which in turn lead to enhanced organizational performance. The results also suggest that organizations with enhanced DMCs are able to initiate market disruption and achieve superior performance by out-competing their rivals. Practical implications The research provides guidelines for managers wanting to exploit their DMCs by showing that organizations can match the environment, create market turbulence or combine both strategies to fully exploit their DMCs. This study also provides managers with actionable tools that are specific, robust and easily applied. Originality/value This study is one of the few to incorporate induced market turbulence into the DC literature and conceptualize, develop and validate scales to measure it. The study provides empirical evidence for the claim that operational marketing capabilities are necessary to utilize the benefits of DMCs.

Bifurcating the dynamic dominant logic: technical and evolutionary patterns of action

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chandra Dwipayana ◽  
Ruslan Prijadi ◽  
Mohammad Hamsal
Keyword(s):  
Structural Equation ◽  
Dynamic Capabilities ◽  
Digital Transformation ◽  
Superior Performance ◽  
Integrative Model ◽  
Equation Modeling ◽  
Content Type ◽  
Dominant Logic ◽  
Term Performance ◽  
Evolutionary Fitness

PurposeThis study proposed the integrative model of dynamic dominant logic (DL) with exploitation (EP) and exploration (ER) as a pattern of actions in endeavoring firm performance (FP). This study also intended to explain the multiple patterns of DL in creating technical and evolutionary fitness simultaneously.Design/methodology/approachThis study used a cross-sectional quantitative analysis of the Indonesian commercial banking population facing digital transformation and was analyzed using covariance-based structural equation modeling through parceling.FindingsThe model confirmed that DL positively affects EP and ER. It also revealed that DL indirectly impacts FP through EP, indicating changes in the traditional banking business through the strong acceptance of “new realities” in adapting to the rapid growth of technology. Hence, this study discovered that during the recent banking digital transformation, the beneficial inertia of the technical pattern of action might lose effectiveness in creating superior performance.Practical implicationsDL is vital in locking short-term performance while maintaining long-term performance opportunities through EP and ER to promote digital transformation. Accordingly, it induced banks to adopt new technology for value creation and fortifying competitive advantage.Originality/valueThis study provided a theory about how DL links the firm's decision-making process by promoting multiple patterns of action in achieving technical and evolutionary fitness. It highlighted the DL as a resource conceptualization that promotes resource development through EP and ER as microfoundation of dynamic capabilities during the tension of institutionalization and digital transformation.

Narratives of environmental munificence of 3PL firms on the relationship between dynamic capabilities, strategic management and organizational performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Korhan Arun ◽  
Saniye Yildirim Ozmutlu
Keyword(s):  
Strategic Management ◽  
Organizational Performance ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Performance Outcomes ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Environmental Munificence ◽  
The Relationship

PurposeThe purpose of this paper is to examine how the mediating effect of strategic management impacts the relationship between dynamic capabilities and firm performance concerning environmental munificence in 3rd party logistics (3PL) firms operating in Turkey.Design/methodology/approachVariance-based structural equation modeling algorithm and correlation analysis were applied to survey data obtained from (n = 482) a top manager from 3PL companies.FindingsResults revealed that dynamic capabilities were a strong predictor for organizational performance, environmental munificence also emerges as a key predictor for dynamic capabilities and strategic management, and strategic management fully mediates the link between dynamic capabilities and organizational performance, suggesting that they function as substitutes in affecting performance outcomes.Research limitations/implicationsThis paper provides empirical evidence of the relationship between the dynamic capability adaptation, strategic management, environment and performance of 3PL firms. As a limitation, the results are based on survey research with a limited sample size.Practical implicationsOrganizations should manage not only dynamism but also the scarcity of environmental resources found to be significant on both dynamic capabilities and strategic management. Additionally, in the logistics sector, managers should focus on the big picture while they empower and lead capable followers to transform this strategic view into operational-level changes.Originality/valueDepending on the relationships between constructs, studying environmental munificence is a different topic than the dynamic environment concept in the effectiveness of dynamic capabilities of 3PL firms. As well as dynamic capabilities at the level of individual and strategic management relationship on organization performance are confirmed.

The role of marketing capabilities, absorptive capacity, and innovation performance

2018 ◽  
Vol 36 (4) ◽  
pp. 410-424 ◽  
Author(s):  
Juliana Conceição Noschang da Costa ◽  
Shirlei Miranda Camargo ◽  
Ana Maria Machado Toaldo ◽  
Simone Regina Didonet
Keyword(s):  
Organizational Performance ◽  
New Product Development ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Marketing Capabilities ◽  
Content Type ◽  
Innovative Capability

Purpose The purpose of this paper is to analyze effects of absorptive capacity (ACAP) on organizational performance. The model looks at the mediating influence of marketing capabilities (innovative capability and new product development capability (NPDC)) and innovation performance (IP). Design/methodology/approach This study takes a quantitative approach by using survey data from 333 Brazilian manufacturer managers involved with strategic marketing processes. Structural equation modeling was used to test the theoretical hypotheses. Findings Results indicate that ACAP does not have a direct impact on organizational performance. The relation is fully mediated by marketing capabilities (innovative capability and NPDC) and IP. Research limitations/implications According to the research findings, managers should put efforts in the ACAP as well as marketing capabilities that will result in better organizational performance. This research is limited to the context of manufacturer firms in Brazil. However, it is suggested that an application of this research can be conducted in different industries and different countries. Originality/value This study contributes to theory and management practice. First, no study has explored all these constructs together. Through the relationship between ACAP and performance, the authors found that marketing capabilities and IP can fully mediate the former proposed relation. The authors’ contribution is the understanding of the role of ACAP influence on performance. Managers should be encouraged to invest in companies’ ACAP as well as marketing capabilities to differentiate themselves from competitors and improve performance.

Comprehending a knowledge framework as a source of dynamic capabilities in IJVs through PLS-SEM

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madhavi Kapoor ◽  
Vijita Aggarwal
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Global Market ◽  
Innovation Performance ◽  
International Joint Ventures ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Content Type

Purpose This study aims to investigate the relationship among knowledge transfer enablers, knowledge transfer process, absorptive capacity and innovation performance in the context of Indian international joint ventures (IJVs). These elements are woven with the thread of dynamic capabilities theory (DCT) into an integrated framework. Design/methodology/approach Data analysis is conducted on a quantitative survey of 196 IJVs with partial least squares structural equation modeling as the statistical technique. Findings Co-learning strategy, collaborative trust culture, information technology-based resources and systems and organizational structural design are found to be significant knowledge transfer enablers. Absorptive capacity has a complementary partial mediation effect on the positive relationship between knowledge transfer and innovation performance of Indian IJVs. Research limitations/implications The study has pioneered in explicating the criticality of IJV’s internal dynamics to cope with the global market dynamism in a much needed Indian context. Practitioners must focus on building dynamic capabilities in IJVs to make them sustainably competitive, as proposed and evaluated by this study. Further, IJV managers need to strategize their resources, routines and structure dynamically to foster knowledge transfer and innovativeness. Originality/value The comprehensive model on DCT offered by this study is rare to match in literature with a completely new context, which is the need of the hour.

Transforming people practices by re-structuring job engagement practices for generation z: An empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Deepika Pandita ◽  
Amresh Kumar
Keyword(s):  
Organizational Support ◽  
Structural Equation ◽  
Reliability And Validity ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Job Engagement ◽  
Content Type ◽  
Perceived Supervisor Support ◽  
Engagement Strategies ◽  
The Individual

Purpose This paper aims to develop the readers’ understanding of the transforming role of job engagement (JOB) drivers, specifically for Gen Z in information technology (IT) Companies across India. It measures the association of JOB and perceived organizational support (POS), perceived supervisor support (PSS) and co-worker relationship (COP) with a very special reference to Gen Z. Design/methodology/approach A total of 302 survey-based responses were collected. To test the conceptualized model of JOB, structural equation modeling was used. Confirmatory factor analysis was conducted using the AMOS platform toward determining the reliability and validity of the individual constructs and the overall model. Findings All three dimensions, namely, POS, PSS and COP, are positively related to JOB. Out of the three, the most contributing extent in engaging Gen Z is PSS. Research limitations/implications A conceptual framework of Gen Z engagement drivers could help human resource (HR) researchers fine-tune Gen Z employees’ retention strategy. The paper shows that it is not about pandering to them but about eliminating blocks so that Gen Z can deliver the future business. Practical implications The outcomes may aid establishments and policymakers in advancing and improving HRs policies in engaging Gen Z, who have started entering the organizations. Originality/value JOB practices can add to the determinations of the HRs processes in the IT start-ups organizations in dealing with Gen Z. This research reconnoiters the drivers of engagement strategies directly impacting JOB Gen Z.

Investigate the role of distributed leadership and strategic flexibility in fostering business model innovation

2019 ◽  
Vol 13 (1) ◽  
pp. 93-112 ◽  
Author(s):  
Suqin Liao ◽  
Zhiying Liu ◽  
Lihua Fu ◽  
Peichi Ye
Keyword(s):  
Business Model ◽  
Distributed Leadership ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Business Model Innovation ◽  
Equation Modeling ◽  
High Tech ◽  
Strategic Flexibility ◽  
Environmental Dynamism ◽  
Content Type

PurposeThe purpose of this paper is to examine whether the new distributed leadership patterns is an important driver for innovating business model. By synthesizing insights from the dynamic capabilities perspective, it also explores how and when distributed leadership enhances the business model innovation (BMI) by involving strategic flexibility as a mediator and environmental dynamism as important contingency.Design/methodology/approachA survey via questionnaire was conducted with 262 CEOs and 262 senior managers from Chinese high-tech companies that provided the research data. Structural equation modeling and linear regression analyses were used to test the time-lagged data, and then the main research questions were responded to.FindingsThe analysis reveals that distributed leadership has a significant direct influence on BMI, and that distributed leadership also indirectly affects BMI by enhancing strategic flexibility. Environmental dynamism strengthens the positive effect of distributed leadership on BMI under strategic flexibility.Originality/valueThis paper advances and enriches the emerging stream of BMI research. It presents an innovative conceptual analysis of the antecedents of BMI, and it shows a possible solution for BMI that complements extant research that considers which and how the leadership style of the organizations affects the business model change.

The effects of knowledge creation process on organizational performance using the BSC approach: the mediating role of intellectual capital

2018 ◽  
Vol 22 (4) ◽  
pp. 802-823 ◽  
Author(s):  
Gholamhossein Mehralian ◽  
Jamal A. Nazari ◽  
Peivand Ghasemzadeh
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Knowledge Creation ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Success Factor ◽  
Content Type ◽  
Key Dimensions ◽  
The Relationship

PurposeKnowledge is a key success factor in achieving competitive advantage in the current fast-paced and uncertain economic environment. Several studies in the literature have analyzed the relationship between knowledge creation (KC) and organizational success; however, the mechanisms by which KC leads to accumulation of intellectual capital (IC) and thereby affects various dimensions of organizational performance are understudied. The purpose of this paper is to examine how KC and IC and their relationship influence key dimensions of organizational performance.Design/methodology/approachA research model was developed and tested based on the literature in the areas of KC, IC and organizational performance. This study uses a survey sent to companies in an intensive knowledge-based industry. The balanced scorecard (BSC) approach was used to measure the key dimensions of organizational performance.FindingsThe results from structural equation modeling (SEM) on 470 completed questionnaires received from the pharmaceutical companies in Iran reveal that KC activities lead to the accumulation of organizational IC and IC has a crucial and positive impact on the BSC. Furthermore, the results from the path analysis indicate that IC mediates the effects of KC on the BSC.Practical implicationsThe findings of this study contribute to the extant literature on the relationship between knowledge and organizational performance by demonstrating that knowledge and KC lead to performance when organizations utilize KC activities and leverage them to accumulate IC. Once used effectively, IC will result in a better performance in the knowledge-intensive environments.Originality/valueThis is the first study that investigates how KC contributes to firm performance by incorporating the mediating impact of IC on the BSC. The proposed model and results will help organizations to identify the mechanisms through which KC initiatives improve organizational performance.

Dynamic capabilities: interrelations and distinct effects on performance in low and high competitive intensity environments

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amiram Markovich ◽  
Kalanit Efrat ◽  
Daphne R. Raban
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Equation Modeling ◽  
Company Performance ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Competitive Intensity ◽  
Content Type ◽  
Impact Performance

PurposeThis study aims to augment the understanding of dynamic capabilities (DCs) by exploring the interrelations among the DC categories (sensing, seizing, reconfiguring) and the distinct impact of each DC on firm performance under low and high levels of competitive intensity.Design/methodology/approachThe analysis is based on a cross-sectional survey of 139 managers in Israel. The data were collected through Web-based questionnaires using the Qualtrics software. A two-stage data analysis was performed using structural equation modeling (SEM).FindingsThe findings indicate that DCs follow a sequence in which sensing drives seizing, which, in turn, enhances reconfiguring. The effects of sensing are mainly manifested through its direct impact on seizing, with no evidence for an impact of sensing on company performance. Moreover, under low competitive intensity, only seizing appears to impact performance, while under high competitive intensity, reconfiguring joins seizing in improving firm performance.Originality/valueThe study's findings advance the debate on the direct vs sequential nature of DCs by indicating an internal DC sequence. Our research also advocates for a crucial role of sensing in enhancing DCs, regardless of the level of competitive intensity. Furthermore, this research expands the understanding of the consequences of DCs and enables the prioritization of DC categories under low and high competitive intensity.

The role of sustainability control systems in translating CSR into performance in Iran

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kaveh Asiaei ◽  
Nick Bontis ◽  
Omid Barani ◽  
Majid Moghaddam ◽  
Jasvinder Sidhu
Keyword(s):  
Organizational Performance ◽  
Control Systems ◽  
Natural Resource ◽  
Agency Cost ◽  
Management Control ◽  
Superior Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Resource Orchestration

PurposeThis study aims to explore the extent to which companies rely on sustainability management control systems (SMCS) to translate corporate social responsibility (CSR) into superior performance building upon the premise of the natural resource orchestration perspective.Design/methodology/approachData were collected based on a survey data set from 118 Chief Financial Officers of publicly listed companies in Iran. The theoretical model was tested using partial least squares structural equation modeling (PLS-SEM, SmartPLS 3.0) as a method that enjoys minimum demands concerning normality assumptions and sample size.FindingsThe findings support the full mediation effect of SMCS on the relationship between CSR and organizational performance. This implies that CSR affects performance only through the mediating role of SMCS.Practical implicationsThe central premise in the proposed theoretical framework is that the utilization of proper management control mechanisms (i.e. SMCS) can help the organization to better synchronize, measure and manage – i.e. “orchestrate” – the social, environmental and economic impacts, and this, in turn, leads to improved organizational performance.Originality/valueTo the best of the authors’ knowledge, this is the first study of its kind, building on a unique synthesis of the agency cost perspective and resource orchestration theory, to introduce the “natural resource orchestration” approach for examining the intervening role of SMCS between CSR and organizational performance.

The effect of product complexity and communication quality on IOCM and OBA in buyer– supplier relationships

2019 ◽  
Vol 16 (1) ◽  
pp. 1-29 ◽  
Author(s):  
Bakil DhaifAllah ◽  
Sofiah Md-Auzair ◽  
Ruhanita Maelah ◽  
Md Daud Ismail
Keyword(s):  
Structural Equation ◽  
Discriminant Validity ◽  
Cost Management ◽  
Reliability And Validity ◽  
Equation Modeling ◽  
Future Research ◽  
Communication Quality ◽  
Product Complexity ◽  
Supplier Relationships ◽  
Content Type

Purpose This paper aims to investigate the effect of product complexity and communication quality on inter-organizational cost management (IOCM) and open book accounting (OBA) practices in buyer–supplier relationships in Malaysian manufacturing firms. Design/methodology/approach A questionnaire survey was administrated to CFOs or accounting managers of Malaysian suppliers. Exploratory factor analysis and Structural Equation Modeling procedures were applied to test convergent and discriminant validity of the measurement model and examine the relationships among the latent constructs in the structural model. Findings The results suggest that IOCM and OBA scales show acceptable reliability and validity. The findings also report that both product complexity and communication quality have a positive effect on IOCM and OBA in buyer–supplier relationships. However, the results suggest that IOCM does not influence OBA practice. Research limitations/implications Although IOCM and OBA constructs exhibited satisfactory reliability and validity, future research is required to refine and further validate these constructs. The data were only collected from the supplier’s perspective. Thus, future research is invited to benefit from matched data from both suppliers and buyers to generate additional insights on IOCM and OBA. Practical implications This study may assist suppliers and buyers in relationships by suggesting that complex products require the adoption of IOCM and OBA practices to reduce information asymmetries and manage costs. Furthermore, emphasizing quality of communication may enhance the implementation of these practices. Originality/value Theoretically, this study contributes to the academic stream of management accounting and cost management as it enhances an understanding of contributions introduced in prior literature on IOCM and OBA. It uses a complementary approach of transaction cost theory (TCT) and social exchange theory (SET) to explain the research model. Methodologically, the study validated scales for measuring IOCM and OBA in a new environment.

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